The Wall Street Consensus at COP27

Daniela Gabor in Phenomenal World:

At COP26, US Special Envoy for Climate John Kerry sanguinely declared the need to “derisk the investment, and create the capacity to have bankable deals. That’s doable for water, it’s doable for electricity, it’s doable for transportation.” Derisking is financial speak for the public sector—be it through official development aid, multilateral resources or national fiscal resources—accepting to take some risks from private financiers in order to persuade them to invest, public efforts variously described as “mobilizing private finance”or “blended finance.”  In response, the UN Special Envoy for Climate and head of the Glasgow Financial Alliance for Net Zero (GFANZ) Mark Carney announced GFANZ’s intentions to work in partnership with governments and multilateral development institutions to mobilize its $130 trillion for green purposes.

At this year’s COP27 in Egypt, Carney was less triumphant. On the contrary, he defensively explained why the GFANZ financiers had dropped the partnership with UN Race to Zero, intended to police their green pledges and reduce pervasive greenwashing. No longer flanked by top financiers like BlackRock’s Larry Fink (who reportedly stayed away to avoid further incensing the US Republican party), and amid several reports denouncing the systematic failure of the GFANZ-Global North mobilization drive, Carney cut a lonely figure.

More here.